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  1. #21
    Join Date
    Oct 2006
    Posts
    15,664

    Default Re: What Would Be Taxes from Selling a Fixer Upper That My Minor Son Inherited

    Quote Quoting A110ver
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    It seems that a true price of the house in Virginia could be difficult to establish. That is why I simply compared the prices of the similar houses in the most proximate area.

    Those renovated Victorian properties of similar size and age are going $100-120 for a square foot. This house is 3100 square feet.

    It was neglected, looking ugly inside and out. However, the location is good.

    The property’s price by the county for tax purposes before the renovation was 119,000.00 (only the lot 36,000.00). That is how I knew that the appraisal of 18,500.00 was a hoax.

    The funniest thing is that my attorney also was trying to convince me to sell the house to someone he knows for 35K.

    Then I got curious how much I will be offered if a realtor advertises it. So, there was an offer of 56K. The “buyer” was really persistent. I turned it down mostly because I had to go to court to sell before my son turned 18.

    So, instead, I decided to keep it and fix it myself. It was all gutted. It has old good “bones”. The builders had a hard time putting nails or drilling holes in 125 years old wood that now practically turned into a rock. The house looks beautiful now. It was a biggest project of my life.

    I still am not sure about the taxes if sold. I’m still debating with myself onto moving in or to sell. However, I am leaning toward the first one: to move in.

    Thanks to everybody for responding.
    Just remember, its your SON that has to live there long enough to follow the tax rules, not you. It will do your son absolutely no good if you live there for the next two years, but he moves out after 6 months or a year. Although, going away to college counts only as a temporary absence from the primary home.

  2. #22
    Join Date
    Oct 2014
    Posts
    7,429

    Default Re: What Would Be Taxes from Selling a Fixer Upper That My Minor Son Inherited

    Quote Quoting jk
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    Of course there will be exceptions but when it comes to an expert witness, Iím sure you will agree the appraiser will get the nod due to their license while the real estate agent will be considered a layman and would have to prove their worth and then maybe they will be considered an expert.
    Actually, no I don't quite agree. While I agree that the license helps to establish the person as an expert, in court the entire background of the person is needed to prove him/her an expert. The license alone isn't going to do it. The court wants to know what knowledge and expertise the witness has in the area. And if the person has the knowledge and experience to be an expert his or her testimony is admissible and it is up to the trier of fact to decide what weight to give it. There is nothing in the rules of evidence that says an appraisal from a licensed appraiser is automatically superior to a valuation done by someone else or, to use your phrase, that the appraiser's value is "deemed legally reliable while the valuation of a real estate agent isnít." If you think there is something in the federal rules of evidence (which would apply to a federal tax case concerning the gain on the OP's real estate) that supports your statement please cite the rule that says so. I've litigated cases in federal court and dealt with experts. I've not seen any such rule.

    I'm not saying the license is not significant or helpful. Clearly it is. But I am saying that nothing in the law says that the licensed appraiser's valuation is automatically better than any other.

  3. #23
    Join Date
    Mar 2019
    Posts
    26

    Default Re: What Would Be Taxes from Selling a Fixer Upper That My Minor Son Inherited

    Dear Taxing Matters,

    I have answered to all your questions. Would you, please, help me to summarize the responses? It is quite difficult for me to comprehend.

    I would highly appreciate if you could present a simple (very approximate-OK) equasion onto how the taxes would be looking like if the house is sold.

  4. #24
    Join Date
    Oct 2006
    Posts
    15,664

    Default Re: What Would Be Taxes from Selling a Fixer Upper That My Minor Son Inherited

    Quote Quoting A110ver
    View Post
    Dear Taxing Matters,

    I have answered to all your questions. Would you, please, help me to summarize the responses? It is quite difficult for me to comprehend.

    I would highly appreciate if you could present a simple (very approximate-OK) equasion onto how the taxes would be looking like if the house is sold.
    You really need to ask that question of a local tax professional who can review everything. Taxing Matters is excellent, but even he would say that you need to get your summarized advice from a local professional.

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